Money plays an important role in compulsive and addictive behaviors. When someone suffering from an addiction runs out of resources, he or she may borrow, cheat or steal to feed the addiction. As a result, financial problems are a common consequence, and getting a handle on these problems is an important aspect of recovery. Sometimes, however, one’s relationship with money and financial behaviors becomes a problem unto itself. 

Money is the number one source of disagreement in the early years of marriage (Oggins, 2003), and a common area of conflict for couples (Dortch, 1994).  In a survey of 1,001 adults, 40 percent admitted they had lied to their spouses about the cost of a purchase (Medintz, 2004). Financial strain has been found to reduce overall relationship satisfaction (Vinokur, Price & Caplan, 1996); worsen symptoms of depression; lead to problems in performing one’s various roles in life; and difficulty with emotional functioning and personal health (Price, Choi &Vinokur, 2002). Financial problems also can have a negative impact one’s job performance (Grensing-Pophal, 2002).

A September 2008 survey by the American Psychological Association found that 80 percent of Americans said that money and the economy was a major stressor in their lives — an increase of 14 percent from April 2008. Given the financial health of the average American, this comes as no surprise. Prior to the current Wall Street crisis, the average American household was buried under mortgage debt, car and tuition loans, home equity loans and credit card debt to the total of $117,952 per household (Toedtman, 2008). With the accessibility of easy credit, no down payments and interest-only mortgages, the average American seems to have become a credit junkie. And just like an addict who has run out of resources, the average American is hitting a financial bottom.

Money disorders

While overspending seems to be as prevalent as the common cold in America, money disorders represent a more severe and chronic problem. Money disorders are maladaptive patterns of financial beliefs and behaviors that lead to clinically significant distress, impairment in social or occupational functioning, undue financial strain or an inability to appropriately enjoy one’s financial resources (Klontz et. al, 2008). Symptoms of money disorders often include: anxiety; worry or despair about one’s financial situation; denial; financial infidelity; a lack of savings; excessive debt; bankruptcy; foreclosure; or conflicts with family and others about money. The most pervasive and chronically destructive financial behaviors are rooted in painful emotions related to past relationships and events, and may require psychotherapy to achieve resolution resulting in lasting healthy financial behaviors (Klontz, Kahler & Klontz, 2008). Money disorders often have addictive and compulsive characteristics.

While money disorders permeate our culture — with the exception of pathological gambling — the mental health field has done little to identify them as a significant clinical issue (Tachtman, 1999; Mumford & Weeks, 2003). Trachtman (1999) describes money issues as “perhaps the most ignored subject in the practice, literature and training of psychotherapy.” Sigmund Freud acknowledged the powerful impact of unresolved money issues on human functioning, but admitted that, in regard to his father’s financial difficulties, he “preferred to suppress rather than explore their impact on him” (Trachtman, 1989).
 

Trachtman (1999) suggests that many modern mental health providers are following in Freud’s footsteps. He notes that when psychotherapists “cannot address our own money issues, we also cannot control our own countertransference reactions to our patients’ money or their money related attitudes and behaviors.” If therapists haven’t addressed their own money issues, they will not be able to effectively help their clients with similar issues. Perhaps the often unconscious avoidance of money issues by therapists reflects this unfinished business.

This article introduces several money disorders that are commonly seen in clinical practice, including: workaholism, compulsive buying disorder, compulsive hoarding, financial dependence and financial enabling. Similar to many addictive and compulsive behaviors, maladaptive patterns of money beliefs and behaviors persist, despite their emotional, social, occupational and financial consequences, and often require treatment to overcome.

Workaholism

Workaholism is often a family disease passed down from parent to child. Workaholics use work to cope with feelings of emotional pain and inadequacy. They get adrenaline highs from work binges and then crash from exhaustion, leading to feelings of irritability, low self-esteem, anxiety and depression. To cope with these feelings, workaholics then begin another cycle of excessive devotion to work. Workaholics are so immersed in work that they have little time to invest in family life and child-rearing. In the time they do spend with their children, they are often passing down their unrealistic and unattainable perfectionistic standards. As a result, their children feel like failures, and grow up convinced they are inadequate, and may attempt to compensate for these feelings by losing themselves in work or some other type of addictive substance or behavior. Workaholism is one of the few addictions that society values and people are quick to claim. “You think you work a lot, I spent 12 hours at the office yesterday!” 

Understandably, children of workaholics become resentful of their parent’s emotional and physical unavailability. Promises are broken and important activities like teacher conferences, sporting events and music recitals are missed. The workaholic’s primary relationship also suffers. Research shows that partners of workaholics report less positive feelings toward their spouse and a greater sense of marital estrangement. In the end, workaholics experience more marital discord, anxiety, depression, job stress, job dissatisfaction and health problems than non-workaholics. While workaholism has not been established as a free-standing mental disorder, the DSM-IV-TR criteria for Obsessive-Com- pulsive Personality Disorder has many similar characteristics (Klontz, Kahler & Klontz, 2008b).

Compulsive buying disorder

Research has demonstrated that compulsive buying afflicts 5.8 percent of the population (Koran, et al. 2006). Compulsive Buying Disorder is as common in America as depression. Compulsive buyers can’t stop thinking about shopping. They obsess about it, experience irresistible impulses to buy and lose control of their spending. They shop to relieve stress and to deal with emotional pain. For compulsive shoppers, shopping becomes like a drug. Dopamine floods their brains when they think about and anticipate the pleasure they will feel when they shop. Shopping can offer a tremendous thrill and often gives the sensation of being high. Soon after, however, comes the inevitable emotional crash resulting in self loathing, low self-esteem and buyer’s remorse.     

For the compulsive shopper, buying is an addiction akin to alcoholism or drug dependency, with similar social and emotional consequences. Research shows that compulsive buyers experience more anxiety, depression, obsessive-compulsiveness and low self-esteem than non-compulsive buyers. When left untreated, compulsive buying can lead to excessive debt, financial strain, bankruptcy, relationship problems, divorce, problems concentrating at work, and in some cases, legal complications. In the DSM-IV-TR, Compulsive Buying Disorder can be included under the diagnosis of Disorders of Impulse Control Not Otherwise Specialized (Klontz, Kahler, & Klontz, 2008b).

Compulsive hoarding

Compulsive hoarders have an emotional attachment to possessions, and have difficulty getting rid of objects that others would consider to be junk. Their living spaces are often so cluttered that they may have difficulty moving around their living space, be unable to use their furniture, and often have unsafe living spaces vulnerable to increased fire risk, unsanitary conditions and falling risks. They often adopt a Scrooge-like mentality around money and may forego expenses such as basic health care, even when they can afford it, as they plan for unknown and unlikely future catastrophes. The DSM-IV-TR diagnoses of Obsessive-Compulsive Personality Disorder and Obsessive Compulsive Disorder describe many of the key aspects of Compulsive Hoarding Disorder (Klontz, Kahler, & Klontz, 2008b).

Financial dependence

Financial dependence can take many forms, ranging from multigenerational welfare recipients to trust fund babies. Financial dependence is on the rise, with a growing number of young adults relying on parents to meet their basic needs. Lack of financial independence can be a significant source of stress; and can stifle motivation, creativity or drive to achieve. Financial dependents often feel that the money they receive comes with strings attached, which creates feelings of resentment or anger, but their anxiety about being cut off from that unearned income keeps them playing the game. Financial dependence is a primary reason women stay in abusive relationships. One study found that 46 percent of domestic violence victims return to live with their abusers due to a lack of money (Anderson, et al., 2003). 

Financial enabling

Every financial dependent needs a financial enabler. The financial enabler plays the same role in the life of a financial dependent or other money disordered individual that the co-dependent plays in the life of an alcoholic. Financial enablers give money to others even when they are unable to afford it, and often to their own financial detriment. They sacrifice their financial well-being for the sake of others, finding it difficult or impossible to say no to requests for money. They give or lend money without making plans for repayment, and often feel resentment or anger after giving money to others, feeling as though others are taking advantage of them. Often, their self-esteem is entangled in their perception of themselves as a helper. However, just like the substance abuser’s codependent, the financial enabler not only harms his or her own financial health, but their enabling behaviors only serve to delay the dependent’s recovery by bailing them out of financial consequences. Any successful treatment of money disorders must take into account the possible presence and role of a financial enabler.

The average person suffering from a money disorder intellectually knows the basics of financial health: save for the future; don’t spend more than you make; and take the time and expense to enjoy your financial successes in a responsible way. However, just like with other compulsive behaviors and addictions, information about sound financial health is just not enough to change destructive money behaviors. For many substance abusers, the wake-up call can be a health crisis, job loss, legal problems or relationship conflict. Some take the opportunity to change, while others ignore it and speed up their demise. The social, emotional and financial consequences of money disorders offer just such an opportunity.

Our research has shown some support for the effectiveness of psychological interventions in treating disordered money beliefs and behaviors and related psychological symptoms, such as depression and anxiety. Participants in our study reported significant improvements in psychological symptoms and financial health following treatment (Klontz, et. al, 2008). Given the prevalence of disordered money behaviors, problematic money beliefs and related psychological distress, mental health professionals could better serve their clients by assessing their client’s financial health during clinical interviews, and providing intervention when warranted. C

Brad Klontz, PsyD, CSAC, is a clinical psychologist, speaker, consultant, President of the Hawaii Psychological Association, and CEO of Klontz Coaching & Consulting.

Ted Klontz, Ph.D., CAC is the President of Klontz Coaching & Consulting, a consultant for Onsite Workshops, and at counsel with Flood, Bumstead, McCready and McCarthy, an international entertainment management group.

They are the co-authors of several books including Wired for Wealth: Change the Money Mindsets that Keep You Trapped and Unleash Your Wealth Potential.  They can be reached at www.klontzcoaching.com.

References

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American Psychological Association. (2008). APA poll finds women bear brunt of nation’s stress, financial downturn: Annual Stress in America Survey shows increasing stress takes toll on physical and emotional health. Retrieved November 14, 2008, from http://www.apa.org/
releases/women-stress1008.html.
Anderson, M.A., Gillig, P.M., Sitaker, M., McCloskey, K., Malloy, K., & Grigsby, N. (2003). “Why doesn’t she just leave?” A descriptive study of victim reported impediments to her safety. Journal of Family Violence, 18(3), 151-155.
Dortch, S. (1994). Money and marital discord. AmericanDemographics, 16(10), 11-14.
Furnham, A. (1985). Why do people save? Attitudes to, and habits of, saving money in Britain. Journal of Applied Social Psychology, 15(4), 354-373.
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Klontz, B.T., Kahler, R., & Klontz, P.T. (2008). Facilitating financial health: Tools for financial planners, coaches, and therapists. Cincinnati, OH: The National Underwriter Company.
Klontz, B., Klontz, T., & Kahler, R. (2008). Wired for wealth: Change the money mindsets that keep you trapped and unleash your wealth potential. Deerfield Beach, FL: Health Communications, Inc.
Klontz, B.T., Bivens, A., Klontz, P.T., Wada, J., & Kahler, R. (2008). The treatment of disordered money behaviors: Results of an open clinical trial. Psychological Services, 5(3), 295-308.
Klontz, P.T., Kahler, R., & Klontz, B.T. (2008). The financial wisdom of Ebenezer Scrooge: 5 principles to transform your relationship with money. Deerfield Beach, FL: Health Communications, Inc.
Koran, L.M., Faber, R.J., Aboujaoude, E., Large, M.D., & Serpe, R.T. (2006). Estimated prevalence of compulsive buying behavior in the United States. The American Journal of Psychiatry, 163(10), 1806-1812.
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Price, R.H., Choi, J.N., & Vinokur, A.D. (2002). Links in the chain of adversity following job loss: How financial strain and loss of personal control lead to depression, impairedfunctioning, and poor health. Journal of Occupational Health Psychology, 7(4), 302-312.
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solomon  - managing finances while obtaining a masters'   |24.20.76.xxx |2009-02-24 13:39:53 Any suggestions on how to study well, with all the responsibilities of grown ups..bills, children etc. Not enough money to study...real studying , researching and writing...? Many have great insight to contribute, how do we get the freedom to let our creativity flow. Reply 0   0

Kathleen Burns Kingsbury  - Money Coach, KBK Connections, Inc.   |98.216.24.xxx |2009-02-20 06:05:02 This is another great article by Ted and friends! I see more and more of this in my clinical practice now that my eyes have been open to these issues. I think all therapists and helping professionals should receive training in this area as well as financial advisors on how to refer clients when needed. If we all work together we can be financially healthier individually and as a society. Kathleen Reply 0   0

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